PRECIOUS-Gold falls as risk appetite grows; focus on U.S. jobs data

PRECIOUS-Gold falls as risk appetite grows; focus on U.S. jobs data

Reuters  | Jun 05, 2020 19:50

PRECIOUS-Gold falls as risk appetite grows; focus on U.S. jobs data

* U.S. non-farm payrolls data due at 1230 GMT
* Silver faces first weekly decline in five
* $1,670 key support, $1,750 key resistance for gold -
* For an interactive graphic tracking the global coronavirus
spread, open in an external browser

(Updates prices)
By Eileen Soreng
June 5 (Reuters) - Gold fell and was on track for a third
straight weekly decline on Friday, weighed down by gains in
riskier assets as investors grew more hopeful of a rebound in
the coronavirus-hit global economy.
Spot gold XAU= was down 0.3% at $1,705.73 per ounce at
1140 GMT. U.S. gold futures GCcv1 fell 1.2% to $1,707.30.
Bullion has declined 1.2% so far this week, on track for its
biggest fall since the week ending May 1.
"The European Central Bank's move yesterday is supporting
risk-taking .... It seems more investors holding gold are
switching out to the equity market," said UBS analyst Giovanni
"I still see gold moving in a $1,700-$1,750 range for the
time being."
The ECB approved a bigger-than-expected expansion of its
stimulus package on Thursday, which added to investors
confidence to buy riskier assets. World stocks held their ground
near three-month highs. MKTS/GLOB
Investors are now awaiting U.S. nonfarm payrolls data for
May at 1230 GMT. Payrolls are seen falling by 8 million after a
record 20.537 million plunge in April, according to a Reuters
survey. The data comes ahead of a two-day policy meeting of the U.S.
Federal Reserve next week. The U.S. central bank has injected
massive stimulus and cut interest rates to near zero to cushion
the blow from the coronavirus pandemic. The unprecedented central bank stimulus to bolster economies
has also boosted risk appetite, curbing some demand for
safe-haven assets.
"Gold prices have levelled-off in the past few weeks ... We
see $1,670 per ounce as the key support and $1,750 as key
resistance, (a) break on either side will provide a clear
guidance," said ANZ commodity strategist Soni Kumari.
Elsewhere, palladium XPD= edged 0.1% higher to $1,933.70
per ounce, while platinum XPT= dropped 0.8% to $830.18.
Silver XAG= was 0.6% lower at $17.61, and was set for its
first weekly decline in five.

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